Playtech Buys Virtue Fusion
15th February, 2010
Gaming software company, Playtech has bought online bingo company Virtue Fusion for £36million according to reports to strengthen its offering in international online bingo markets.
Playtech will pay an initial £29million in cash in addition to up to £7million in the first quarter of 2011 based on the performance of Virtue Fusion in 2010.
The poker and casino operator has said that bingo is one of the fastest growing segments in the online gaming industry since 2009 and that this deal will enable cross selling opportunities.
Playtech CEO Mor Weizer said in a statement, that online bingo had found early favour with regulators. "We see this acquisition as not only furthering what is already Playtech's competitive advantage in the growing online gaming market as a whole, but as having the potential to generate meaningful opportunities in newly regulated markets," Weizer said.
Virtue Fusion has more than 20 licensees including: William Hill, Ladbrokes and Paddy Power. The company turned over more than £12.3million last year and had adjusted earnings before interest tax depreciation and amortisation of £3.8 million pounds.
“A combination of industry growth, a good trading update at the end of January and some interesting partnerships and acquisitions has helped lift Playtech's shares by 21 percent in the last three months,” said Daniel Stewart analyst, James Hollins.
By Tom
